Lemon, Inc., has the following items related to the AMT: $$\begin{array} { l l }
\text {Alternative minimum tax base}& \$ 10,275,500\
\text {Regular corporate tax }& 1,112,500\
\text {Foreign AMT tax credit }& 187,020\
\text {Cost of goods sold }& 2,260,020\
\end{array}$$ The corporation's AMT, if any, is:

Question

Lemon, Inc., has the following items related to the AMT: $$\begin{array} { l l } 
\text {Alternative minimum tax base}& \$ 10,275,500\
\text {Regular corporate tax }& 1,112,500\
\text {Foreign AMT tax credit }& 187,020\
\text {Cost of goods sold }& 2,260,020\
\end{array}$$ The corporation's AMT, if any, is:

Quizplus · Accepted Answer

The AMT is calculated as 20% of the AMT base, which is $10,275,500 * 20% = $2,055,100. Subtract the regular corporate tax and the foreign AMT tax credit: $2,055,100 - $1,112,500 - $187,020 = $755,580.

Lemon, Inc The Corporation's AMT, If Any, Is: A)$0

Lemon, Inc The Corporation's AMT, If Any, Is:
A)$0